Transcript Promotion

Promotion
Chapter 15
Promotion
•Communication to
inform, persuade,
and/or remind
consumers about an
organization’s
products and
services
Inform
• When a product is new
to the market
• Introduction stage
• Let customers know
about product
Persuasion
• Used when there is a
lot of competition in
the market
• Want them to buy your
product or services
versus competitor
• Growth/Maturity stage
Remind
• When product been out
awhile
• Remind them of how
good it is
• Maturity stage
Product promotional
• Advertising designed to
increase sales of products or
services
• Examples: Milk Commercials “Got
Milk” encouraging consumers to
drink milk
• Ad convincing consumers to buy a
Honda over a Toyota
Institutional Advertising
• Creates a favorable impression
and goodwill for a business
• Examples: Ford emphasizes
“Quality is Job 1” in their ads
• Dow Chemical has ads showing
how they hire new college recruits
• Gulf Oil promotes wildlife
conservation in some of its ads.
Advantages of
promotional activities
• Society
•
•
•
•
Promotes economic growth
Adds money to the economy
Creates jobs
Supports mass media
Advantages (cont.)
• Companies
• Creates awareness of
company and its products
• Helps to develop the
company’s image
Advantages (cont.)
• To consumers
• Encourage higher standard of
living
• Better educate consumers
• Help consumers make more
intelligent purchases
Disadvantages of
Promotion
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•
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Some promotions are deceptive
Can manipulate consumers
Some are offensive
Some create or reinforce
stereotypes
• Play upon people’s fears
Communication in
Promotion
• Interpersonal
communication – involves
two or more people in an
exchange
• Mass communication –
involves communication to a
large audience and
communication is one-way
Four Main Types of
promotions (promotional
mix)
• Advertising
• Publicity
• Personal Selling
• Sales Promotion
Advertising
• Any paid form of
nonpersonal
communication sent
through a mass
medium by an
organization about its
products and services
• Examples: TV,
Radio, Newspaper,
Media
• The agencies, means, or
instruments to convey
messages
•
•
•
•
Radio
TV
Newspaper
Billboards
SECTION 19.1
Advertising Media
Media Advertising Expenditures
U.S. Advertising Expenditures
Advertising is a multibillion-dollar
business. Given the figures
shown in the pie chart, calculate
the total spent on advertising
among all types of media.
Why do you think television and
newspapers bring in the most
advertising expenditures?
Broadcast Media
• Includes Radio and Television
Advertising
Television advertising
• Prime time for network stations
• 8p.m to 11p.m.
• What are infomercials???
• 30 minute commercial
• Promotes items such as cookware,
exercise equipment, and appliances
SECTION 19.1
Advertising Media
Television Advertising
Television is the ultimate advertising medium for
many businesses because it can communicate
a message with sound, action, and color.
 Advantages: Can be directed at a specific
audience, is timely, takes advantage of
holidays and special events.
 Disadvantages: Highest production costs,
high cost for time, audience is
not assured.
Best times for Radio
Advertising?
• In the morning when going to
work or school: 7:00a.m. –
9:00a.m.
• In the afternoon when leaving
work or school: 3:00p.m. –
6:00p.m.
Radio advertisements
• Presented in 15, 30, or 60
second slots (longer slots are
more expensive)
• What are some of your favorite
radio commercials????
Radio Advertising
• Advantages –
• Target specific audience
• More flexible, can be changed
easier
• Mobile medium – can be taken
with you
• Disadvantages – Short life span
• Lack of visual involvement
(people change channel)
SECTION 19.1
Advertising Media
Newspaper Advertising
Newspapers—daily or weekly, local, regional, or
national—are the main form of print media for
many businesses (especially retailers).
 Advantages: Newspapers have large
readership and a high level of reader
involvement.
 Disadvantages: Circulation can be wasted,
advertising life is short, and ads are less
appealing in black and white.
SECTION 19.1
Advertising Media
Magazine Advertising
Both consumer and trade magazines
generate a high level of reader involvement.
Magazines can target specific regional areas
or interest groups.
Advantages: Targeted audience, longer
life span, more likely to be remembered,
better print quality, variety of formats.
Disadvantages: Less mass appeal within
a geographic area, more expensive, not
very timely.
SECTION 19.1
Advertising Media
Direct-Mail Advertising
Direct-mail advertising is sent by businesses
directly through the mail to prospective
customers. Types of direct-mail advertising
include newsletters, catalogs, coupons,
samplers, price lists, and others.
 Advantages: Highly selective distribution,
variety of sizes and formats, catalogs and
coupons can actually make a sale.
 Disadvantages: Low response rate,
high costs.
SECTION 19.1
Advertising Media
Directory Advertising
Telephone directories are the best known
directories. They are divided into the White Pages
(free alphabetical listings) and the
Yellow Pages (paid categorical listings and
free alphabetical listings for businesses).
 Advantages: Relatively inexpensive, used by
all demographic groups, long life span.
 Disadvantages: Not timely.
SECTION 19.1
Advertising Media
Outdoor Advertising
Outdoor signs are better known as billboards.
Advantages: Broad exposure, highly
visible, some can be changed quickly.
Disadvantages: Use is restricted in some
areas, limited viewing time, unknown
audience.
SECTION 19.1
Advertising Media
Transit Advertising
Transit advertising includes printed posters found
inside business and commuter trains, exterior
posters on taxis and buses, and station posters
located near or in subways and in railroad, bus,
and airline terminals
 Advantages: Reaches a wide and
captive audience and is a relatively
economical media.
 Disadvantages: Unavailable in
some areas, restricted to transit
routes.
Online advertising
• Placing messages on the Internet
• Banner Ad – rectangle at top or
bottom of page with advertising on it
or you can click to get to it
• Advantages: A lot of people are on
Internet, can keep track of number of
“clicks”
• Disadvantages: Not high response
rate, may consider
annoying/distraction
Specialty advertising
• Relatively inexpensive items with
advertiser’s name on them (pens,
hats, shirts, cups, etc.)
• Advantages: reminder to use
product
• Disadvantages: small size may limit
amount of message, might be given
to people not interested in product
Cooperative Advertising
• Cost-sharing arrangement
whereby both a supplier and a
local advertiser pay for
advertising (both names appear
in ad)
• Example: Macy’s having an ad
promoting Jessica Simpson’s
new perfume
Advertising Campaign
• Is coordination of a series of
advertisements around a particular
theme to promote a product
• Geiko – Caveman
• Coke – Polar bears
• Milk producers – “Got Milk”
• Advertising Agents – work with
business clients to develop
advertising campaigns
Sales Promotion
Short-term incentive offered to
encourage buying a good or
service. The purpose is to
INCREASE DEMAND and
STIMULATE SALES
Examples of sales
promotions
• Coupons
• Buy one get one free sale
• Factory pack – free gift in
package (cracker jacks and
cereal)
• Sponsorship – local business
having signs on our soccer
fence (concert)
Sales promotions
(examples continued)
• Product samples – detergent,
cologne, toothpaste (dentists and
doctors)
• Promotional tie-in – McDonalds
having disney characters in their
happy meals that go along with their
movie “Goofy” movie
• Product placement – Pepsi paying
Amerian Idol judges to drink their
products while on screen
Advantages/Disadvantages
of Sales promotion
• Advantages: Generates
immediate short-term sales,
supports other parts of
promotional campaign
• Disadvantages: Costs can be
very high, promotion may not be
effective so may lose money
A paid form of nonpersonal
communication sent through
a mass medium is known as
a. personal selling
b. publicity
c. sales promotion
d. advertising.
• An important objective of
promotion is to __________
buyers.
a. deceive
b. manipulate
c. inform
d. delude
• Which of the following is an
example of outdoor media?
• A. A poster in a subway
• B. Large cards mounted on a bus
• C. Calendars printed with a
company’s name
• D. Electrical signs on high-traffic
area
• In this type of advertising medium
the readership is large and there
is a high level of reader
involvement
•
•
•
•
A.
B.
C.
D.
magazine
direct mail
newspaper
transit advertising
This type of advertising usually has
a low response rate and is
considered to be “junk” mail:
a.
b.
c.
d.
Newspaper
Direct mail
Magazines
Billboards
• The prime time for advertising on
the television is
•
•
•
•
A.
B.
C.
D.
4p.m. to 7p.m.
3p.m. to 8p.m.
9p.m. to 12p.m.
8 p.m. to 11p.m.
• With this type of advertising
media sometimes you are limited
to the routes that are available in
your area
•
•
•
•
A.
B.
C.
D.
direct mail
billboards
transit advertising
all of these
• What time slots are radio
advertisement slots?
•
•
•
•
A.
B.
C.
D.
10,
15,
25,
25,
15,
30,
50,
40,
or
or
or
or
20
60
60
60
seconds
seconds
seconds
seconds
• The ultimate advertising medium
is _________ because you can
communicate your message with
sound, action, and color.
•
•
•
•
A.
B.
C.
D.
television
radio
newspaper
magazine
• An advantage of this advertising
media is that almost every home
has one.
• A. radio
• B. newpaper
• C. phone book (directory
advertising)
• D. magazine
• What are the best times for radio
advertising?
•
•
•
•
A.
B.
C.
D.
4a.m.
5a.m.
7a.m.
9a.m.
- 6a.m. and 8p.m. to 11p.m.
- 7a.m. and 6p.m. to 10p.m.
– 9a.m. and 3p.m. to 6p.m.
– 11a.m. and 1p.m. to 3p.m.
• Persuasion is typically used in an
advertisement when
• A. a product is first introduced.
• B. when the product is brand new.
• C. when there is growing
competition
• D. when the sales are declining.
• An advantage of promotional
activities to society is
•
•
•
•
A.
B.
C.
D.
it creates jobs
it adds money to the economy
it supports mass media
all of these
• The means by which advertising
can be presented is known as a
• a. resource.
c. medium.
b. banner.
d. message.
• 3. Which of the following is the
chief advertising medium for
most retail stores?
• a. newspaper
• b. television
• c. radio
• d. magazines
Publicity/Public
Relations
• Non-paid form of business
communication about a
business organization (news
story)
• Advantages: typically free
and it creates goodwill
• Disadvantages: organization
has little control over it
Public Relation
Specialist
• Publicize the good news
about a company
• Control negative damage
done by negative news
News Release
• News release – prewritten story
about a company sent to the media
• New Principals
• Press conference – meeting in
which a business invites media to
hear a newsworthy announcement
• War
• Economic disaster
Personal Selling
• Person-to-person
communication with
potential customers in
an effort to inform,
persuade, or remind
customers
Personal selling
• Disadvantages
•Per person cost
• Advantages:
•Personal contact
•Can be more informative
•Feedback is immediate
Sales Promotion
• Activities or materials
that offer consumers a
direct incentive to buy a
good or service
•Coupons
•Rebates
•Buy one get one free
Sales Promotions (cont.)
• Advantages:
• Generates immediate,
short-term sales
• Supports other parts of
promotional campaign
• Disadvantages:
• Costs can be high
(coupons, rebates, etc.)
What is the promotional
mix?
• It is the combination of the
promotional elements of:
• A. Advertising
• B. Personal selling
• C. Sales Promotions
• D. Publicity
Advertising
• Billboards, newspapers, transit,
TV, radio, magazines, direct
mail, social networking sites,
directory advertising
Personal Selling
• Face to face interaction with
the customer
Sales promotion
•
•
•
•
•
Buy one get one free sales
Coupons
Rebates
Loyalty reward programs
Spirit cards
Public
Relations/Publicity
• Non- paid
• Free publicity
• Good deeds/charity special
events
What is the promotional
mix based on?
• Marketing Mix – product,
price, promotion, place
• Target market
• Policy and objectives for
advertising campaign
• Company’s financial
situation
Five steps to
promotional planning
• Analyze the market – market
research
• Identify the target market –
market segmentation
• Develop promotional
objectives – identify purpose
or result of promotional
objectives
Promotional objectives
(continued)
• Develop a promotional
budget – should be in line
with objectives
• Select the promotional mix –
advertising, publicity, etc..
• Implement the promotional
plan – Have a schedule and
people responsible, keep in
line with budget